Nike is moving to end its relationships with online distributors in China.

Today, TOPSPORTS, the largest distributor of Nike products in China, abruptly announced that its online sales of Nike products in mainland China will completely cease from January 1, 2027. Around midday the same day, another Nike distributor, Pou Sheng International, also released a notice stating it had received a notification from Nike with identical content. Nike indicated it plans to remove thousands of online distributors in China to clean up a digital marketplace that has become chaotic and to reinvigorate growth in the region.

Historically, TOPSPORTS has been the largest authorized first-tier distributor for Nike in China, operating over half of the brand's physical stores and handling a core portion of its online distribution traffic, making it a key pillar of Nike's channel system in the country.

Following the announcement, shares of TOPSPORTS plummeted by nearly 30% at one point. By the market close, the stock was down 24%, marking its largest single-day decline since listing, wiping out approximately 2.85 billion yuan in market value.

In the live-streaming room of the TOPSPORTS flagship store, many users inquired about the termination of the Nike partnership. The host directly stated, "We'll deal with 2027 when it comes," and "We still have offline stores; we'll keep working while we can, so feel free to make your purchases." The host also emphasized that Nike products at TOPSPORTS are cheaper than those at the official flagship store.

However, the reality may differ. A comparison of several identical products between the TOPSPORTS flagship store and Nike's official flagship store shows varying prices due to different discounts, with neither consistently holding an advantage.

In fact, Nike's pricing system has been disorganized for a long time, with different channels offering different prices for the same item, leading to inconsistent final costs for consumers. Many online users expressed concern, asking, "With these online channels gone, will we have to pay full price for Nike in the future?"

Will Discounts Still Be Available?

Are the online channels of the TOPSPORTS flagship store truly cheaper? The facts likely contradict the host's claims. An investigation across several platforms revealed that on Nike's official Tmall store, with combined subsidies, a pair of NIKE Big Nike Low Lux men's casual shoes was priced at 479 yuan, while the same item at the TOPSPORTS flagship store was listed at 644 yuan, making it 165 yuan more expensive than the official channel. There are counterexamples, however, such as the NIKE P-6000 men's casual sneakers for 2026, priced around 503 yuan at TOPSPORTS, while the same model was over 600 yuan on Nike's official site.

The confusion in Nike's pricing is indeed long-standing, involving not just price wars among online stores but also competition between online and offline channels. Industry insiders note that official Taobao stores of distributors like TOPSPORTS and Pou Sheng sometimes offer extremely low promotional prices, significantly undercutting direct sales. In reality, prices across online, offline, distributor, and official channels often vary, with no single channel consistently offering the lowest price.

Consumers have also voiced dissatisfaction with the pricing chaos. One shopper remarked, "I bought a Nike jacket at a TOPSPORTS store with a 'buy two, get 15% off' deal. After the discount, the jacket was over 800 yuan, but the same jacket on the official online flagship store was only about 500 yuan."

On July 22, Nike published a signed article on its official website by Cathy Sparks, Vice President of Nike, Inc. and General Manager of Greater China, outlining the company's new direction for restructuring its retail ecosystem in China. Starting in January 2027, Nike's digital marketplace in China will center on its official flagship stores on Tmall, JD.com, and Douyin, as well as the Nike website and Nike App. With the exception of a few authorized partners, online stores currently operated by partners selling Nike products will gradually cease their sales.

Beyond online consolidation, Nike plans to collaborate with its distributor partners to enhance the in-store experience, introduce new retail concepts led by local Chinese teams, and redefine the roles of digital platforms, physical stores, and retail partners within the market system. Cathy Sparks stated that the goal of these adjustments is to reduce channel fragmentation and create a more complete and consistent consumer experience.

Analysts suggest that over the past two years, discounting has been Nike's most frequently used tool. "Outlet stores and official website prices have been consistently lowered, but the cheap Nikes bought in recent years were a result of stuck inventory that could only be cleared through continuous price reductions—this is actually a symptom of its problems. The current message is clear: it wants to regain control over pricing and inventory management and will no longer be discounting so recklessly."

These analysts believe that major distributors like TOPSPORTS, Pou Sheng, and Rui Li will no longer be able to sell Nike products on platforms like Taobao, Dewu, and Douyin. For consumers seeking authentic products online, the only remaining channel will be the official flagship stores.

"Why make this move? Price chaos originates from these channels. Distributors get products at lower costs and then dump them on e-commerce platforms to boost sales performance, gradually eroding the brand's premium. By closing these outlets, Nike regains control over its pricing." However, for consumers, the channels where they could find heavily discounted items are also being shut down, making it increasingly difficult to find bargains in the future.

Eight Consecutive Quarters of Declining Revenue

Nike's desire to clean up the chaotic digital market and regain control over online pricing is driven by deeper underlying issues.

Analysts point to two main factors. First, Nike's aggressive Direct-to-Consumer (DTC) strategy in recent years has not fully resolved the失控 of its pricing system. New product releases frequently see their market value drop below the retail price immediately upon launch, weakening brand premium. Nike urgently needs to reassert pricing control and restore order to its channels. Second, Nike's performance in China continues to face pressure.

On July 1, Nike reported its fiscal 2026 fourth-quarter and full-year results for the period ending May 31, 2026. Full-year revenue was flat year-over-year at $46.4 billion (approximately 3.15 trillion yuan), representing a 2% decline on a constant-currency basis. The downturn in the Greater China market persisted, with full-year revenue falling 11% to $5.847 billion (approximately 398 billion yuan), a 13% decline on a constant-currency basis. This marks the eighth consecutive quarter of revenue decline for the region, making it the biggest drag on the group's growth.

"The more enthusiastically consumers buy Nike at discounts, the more it indicates Nike's struggles, because the profit margins become very thin," one analyst noted, adding that the change in Nike's Chief Financial Officer is a significant signal.

On June 23 of this year, Nike announced that David M. Denton would assume the role of Executive Vice President and Chief Financial Officer on August 17. The current CFO, Matthew Friend, will step down. Denton previously served as CFO and Executive Vice President at Pfizer and earlier held CFO positions at Lowe's and CVS Health.

Analysts find the new CFO's background intriguing. Denton's previous experience includes Pfizer, a pharmaceutical company; Lowe's, a large U.S. home improvement retailer; and CVS, a U.S. pharmacy chain. "None of these companies are in sports or fashion; they are all large, mature corporations where everything revolves around costs and accounting."

In her open letter, Cathy Sparks, Nike's Vice President and General Manager for Greater China, mentioned that today's market has become overly fragmented, consumer behavior is changing rapidly, and some initiatives Nike had taken resulted in inconsistent and less credible experiences, failing to achieve the expected growth. Therefore, Nike is focusing its strategy on taking action, starting with digital channels, to reshape the market ecosystem.

"Nike is experiencing difficulties adapting to the Chinese market and is placing all the blame on its Chinese distributors," said industry commentator Zhang Shule. He believes that under the冲击 of domestic Chinese trends, brands like Nike and Adidas are indeed struggling online and failing to make an impact offline.

He suggested that other international sportswear brands facing similar situations might aggressively shift towards online direct sales, attempting to eliminate the middleman's markup and offer the lowest prices directly from the manufacturer to compete with domestic trendy brands. If they remain unsuccessful, a gradual withdrawal from the market could follow.